How to claim VAT relief when importing into Northern Ireland for EU

The UK has issued guidance on how to claim relief on import VAT if you ship goods to Northern Ireland for onward supply to an EU country. By claiming Onward Supply Relief, a business can effectively claim a zero rated VAT supply of goods to the customer in the EU state.

When can you claim Onward Supply Relief

The relief only applies when a VAT registered business imports goods in NI from GB or another location outside the EU, for onward final supply to an EU country.

The goods cannot be modified in any way. For instance, you cannot process them in Northern Ireland. And the goods must be despatched within a month (unless you apply for an extension). 

Supporting documents

In order to claim Onward Supply Relief you will need to provide the correct customs procedure code relating to “release for free circulation with simultaneous onward supply to another member state”. The guidance states that using the wrong code could see your relief claim be refused

Authorities will also require the valid commodity code, XI EORI number and your VAT identification number. 

You will be required to present details about precisely where the goods are going and how they are to get there. That includes details about onward transport and the expected date and place of consignment. You are also required to provide details about the purchaser in the EU destination, including their VAT identification number.

If you do not comply with all requirements, HMRC will demand payment of the applicable import VAT.

Record keeping & filing

After claiming, you will need to record the goods on your EC Sales List (applicable in all cases when supplying goods from NI to vat-registered customers in the EU). You must also record the transaction in your VAT return.

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